Oil drops on downbeat outlook for Europe's economy

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The price of oil is dropping after the European Central Bank gave a downbeat assessment of the region's economy.

Benchmark oil fell $1.89, or 2.2 percent, Thursday to $85.99 per barrel in New York. Brent crude fell $1.51 to $107.30 per barrel in London.

The ECB is leaving its key interest rate unchanged at a record low and cutting its 2013 growth forecast to negative from positive. The decision comes as the 17 countries that use the euro currency are in a recession.

Europe's problems have hurt global economic growth. That can lead to less demand for energy products.

At the pump, AAA says the average retail price of gasoline was flat at $3.38 per gallon. That's nearly 11 cents more than a year ago.